MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for GOOG, T, MS, DIS, and More...
March 12 - 8:30 AM EST - Before the open... PriceWatch Alerts for
GOOG, T, MS, DIS, HES, PKX, ERTS, DE, STP, and ATVI, Market
Overview, News Leaders and Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for GOOG, T, MS, DIS, HES, PKX, ERTS, DE,
STP, and ATVI
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Google Inc. (Nasdaq: GOOG)
Last Price 439.84 - APR 440.00 CALL OPTION@ $26.20 -> 6.4% Return
(59.6% Annualized) assigned*
-- AT&T (NYSE: T)
Last Price 36.09 - JUL 35.00 CALL OPTION@ $3.25 -> 6.6% Return
(18.5% Annualized) assigned*
-- Deere & Co. (NYSE: DE)
Last Price 85.73 - APR 85.00 CALL OPTION@ $4.90 -> 5.2% Return
(48.3% Annualized) assigned*
-- Suntech Power Holdings Co. Ltd. (NYSE: STP)
Last Price 30.24 - APR 30.00 CALL OPTION@ $3.30 -> 11.4% Return
(106.3% Annualized) assigned*
-- Activision, Inc. (Nasdaq: ATVI)
Last Price 27.13 - MAY 27.50 CALL OPTION@ $1.10 -> 5.6% Return
(30.8% Annualized) assigned*
-- Morgan Stanley (NYSE: MS)
Last Price 42.49 - APR 40.00 CALL OPTION@ $4.20 -> 4.5% Return
(41.8% Annualized) assigned*
-- Walt Disney Co. (NYSE: DIS)
Last Price 31.19 - JUL 30.00 CALL OPTION@ $2.80 -> 5.7% Return
(15.9% Annualized) assigned*
-- Hess Corporation (NYSE: HES)
Last Price 96.86 - APR 95.00 CALL OPTION@ $6.80 -> 5.5% Return
(51.3% Annualized) assigned*
-- POSCO (NYSE: PKX)
Last Price 128.32 - APR 125.00 CALL OPTION@ $10.20 -> 5.8% Return
(54.5% Annualized) assigned*
-- Electronic Arts Inc. (Nasdaq: ERTS)
Last Price 47.12 - JUN 45.00 CALL OPTION@ $5.20 -> 7.3% Return
(26.3% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Amgen, American Eagle Outfitters, and Dendreon
Corporation lead the list of companies with the most news stories
while Olin Corporation and W.W. Grainger, Inc. are showing a spike
in news. Rio Tinto PLC, AstraZeneca, and Teva Pharma have the
highest srtIndex scores to top the list of companies with positive
news while The Talbots and Centene Corporation lead the list of
companies with negative news reports. Petroleum Development Corp.
has popped up with a high positive news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading continues yesterday's trek into the black, with 10
of the 11 foreign indices that we track in positive territory. The
cumulative average return on the collective stands at a gain of
1.26%. As most other overseas indices celebrated the Federal
Reserve's announcement to increase liquidity in the market, the
Shanghai Composite bucked the trend. After tacking on a gain of
more than 2% in early trading, the index closed with a loss of 2.3%
as investors weighed fears that the Chinese central bank will
tighten its monetary policy to control inflation.
Across the pond in Europe, investors were also celebrating the
recent Fed move. Financials seemed to profit the most, with UBS
(UBS) tacking on 4.5% in overseas trading. British insurance firm
Standard Life jumped nearly 10% on the Fed news, combined with the
revelation that its underlying profit for 2007 more than doubled.
In other news, British Chancellor of the Exchequer Alistair Darling
is slated to deliver the budget to the House of Commons.
The futures contract on the 30-year bond dropped 1 17/32 yesterday,
as Treasury prices fell sharply on a rally in the U.S. equities
market, sending yields sharply lower. The combination of the Fed's
liquidity plan and the strength in the U.S. stock market lessened
the safe-haven demand for the fixed-income market. Drilling down
on the Fed, the central bank said it will lend up to $200 billion
of Treasury securities to primary dealers secured for a term of 28
days, rather than the current overnight term.
April-dated crude oil closed 85 cents (0.8%) higher at $108.75 per
barrel, as a volatile day came to an end. The International Energy
Agency announced lowered projections for world oil demand for the
year, expecting a 2% jump from 2007. The agency noted that high
crude prices will continue to "chip away" at oil consumption in the
United States and other industrialized nations. In another
announcement, the Energy Information Administration stated
expectations for a slowing economy and record-high oil prices to
hold U.S. oil demand growth to 40,000 barrels per day in 2008.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,173,610 put contracts
traded on Tuesday, compared to 1,323,743 call contracts. The
resultant single-session put/call ratio dipped to 0.89, while the
21-day moving average remained at 0.80.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
10:30 a.m. 03/08 Crude Inventories
2:00 p.m. Feb Treasury Budget
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AEO 0.66
GLBC -0.89
GYMB 0.95
HOTT 0.26
JAS 1.08
TLB -0.24
VSE -0.03
VIP 0.39
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